Merchants Bancorp (NASDAQ:MBIN) Shares Gap Down After Earnings Miss

Merchants Bancorp (NASDAQ:MBIN)’s stock price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $43.89, but opened at $41.18. Merchants Bancorp shares last traded at $39.12, with a volume of 109,112 shares traded.

The company reported $1.17 EPS for the quarter, missing the consensus estimate of $1.42 by ($0.25). The firm had revenue of $355.67 million for the quarter, compared to the consensus estimate of $156.13 million. Merchants Bancorp had a net margin of 23.14% and a return on equity of 25.54%. During the same quarter last year, the company posted $1.68 earnings per share.

Merchants Bancorp Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, October 1st. Shareholders of record on Friday, September 13th were given a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a yield of 1.00%. The ex-dividend date of this dividend was Friday, September 13th. Merchants Bancorp’s payout ratio is currently 5.65%.

Analyst Ratings Changes

Several equities analysts recently issued reports on MBIN shares. Morgan Stanley assumed coverage on shares of Merchants Bancorp in a research report on Monday, September 9th. They set an “equal weight” rating and a $54.00 price target on the stock. Raymond James lowered their target price on Merchants Bancorp from $58.00 to $55.00 and set an “outperform” rating for the company in a research note on Tuesday.

Insiders Place Their Bets

In related news, CEO Michael R. Dury purchased 5,200 shares of the business’s stock in a transaction that occurred on Monday, August 5th. The shares were bought at an average price of $38.71 per share, for a total transaction of $201,292.00. Following the purchase, the chief executive officer now directly owns 93,793 shares of the company’s stock, valued at approximately $3,630,727.03. This represents a 0.00 % increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. In other news, CEO Michael R. Dury acquired 5,200 shares of Merchants Bancorp stock in a transaction on Monday, August 5th. The stock was acquired at an average cost of $38.71 per share, for a total transaction of $201,292.00. Following the purchase, the chief executive officer now owns 93,793 shares in the company, valued at $3,630,727.03. This trade represents a 0.00 % increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Vice Chairman Randall D. Rogers sold 75,000 shares of the company’s stock in a transaction that occurred on Thursday, August 22nd. The shares were sold at an average price of $44.00, for a total value of $3,300,000.00. Following the completion of the transaction, the insider now directly owns 748,000 shares in the company, valued at $32,912,000. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 39.70% of the company’s stock.

Institutional Investors Weigh In On Merchants Bancorp

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP lifted its holdings in shares of Merchants Bancorp by 10.2% during the 2nd quarter. Dimensional Fund Advisors LP now owns 1,022,893 shares of the company’s stock valued at $41,465,000 after buying an additional 94,781 shares during the period. Vanguard Group Inc. lifted its holdings in Merchants Bancorp by 2.5% in the first quarter. Vanguard Group Inc. now owns 994,962 shares of the company’s stock valued at $42,962,000 after acquiring an additional 24,122 shares during the period. American Century Companies Inc. boosted its position in Merchants Bancorp by 23.0% in the second quarter. American Century Companies Inc. now owns 370,257 shares of the company’s stock worth $15,010,000 after purchasing an additional 69,133 shares during the last quarter. Marshall Wace LLP grew its stake in shares of Merchants Bancorp by 6,793.6% during the 2nd quarter. Marshall Wace LLP now owns 365,290 shares of the company’s stock valued at $14,809,000 after purchasing an additional 359,991 shares during the period. Finally, Assenagon Asset Management S.A. increased its position in shares of Merchants Bancorp by 91.5% during the 2nd quarter. Assenagon Asset Management S.A. now owns 264,464 shares of the company’s stock valued at $10,721,000 after purchasing an additional 126,375 shares during the last quarter. Hedge funds and other institutional investors own 24.57% of the company’s stock.

Merchants Bancorp Stock Down 17.9 %

The company’s 50-day simple moving average is $44.53 and its two-hundred day simple moving average is $43.02. The firm has a market capitalization of $1.56 billion, a P/E ratio of 5.66 and a beta of 1.09. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.01 and a quick ratio of 0.78.

Merchants Bancorp Company Profile

Merchants Bancorp operates as the diversified bank holding company in the United States. It operates through three segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The Multi-family Mortgage Banking segment engages in the mortgage banking, which originates and services government sponsored mortgages, including bridge financing products to refinance, acquire, or reposition multi-family housing projects, and construction lending for multi-family and healthcare facilities.